CHAPTER II

PROFILE OF PIPES MANUFACTURING INDUSTRY

INTRODUCTION
A pipe is a form of redirection that is used in Linux and other Unix-like operating
systems to send the output of one program to another program for further processing.
Redirection is the transferring of standard output to some other destination, such as
another program, a file or a printer, instead of the display monitor (which is its default
destination). Standard output, sometimes abbreviated stout, is the destination of the
output from command line (i.e., all-text mode) programs in Unix-like operating systems.
Pipes are used to create what can be visualized as a pipeline of commands, which
is a temporary direct connection between two or more simple programs. This connection
makes possible the performance of some highly specialized task that none of the
constituent programs could perform by themselves. A command is merely an instruction
provided by a user telling a computer to do something, such as launch a program. The
command line programs that do the further processing are referred to as filters.
This direct connection between programs allows them to operate simultaneously
and permits data to be transferred between them continuously rather than having to pass it
through temporary text files or through the display screen and having to wait for one
program to be completed before the next program begins.

HISTORY OF PIPES INDUSTRY

Pipes rank alongside the hierarchical file system and regular expressions as one of
the most powerful yet elegant features of Unix-like operating systems. The hierarchical
file system is the organization of directories in a tree-like structure which has a
single root directory (i.e., a directory that contains all other directories). Regular
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expressions are a pattern matching system that uses strings (i.e., sequences of characters)
constructed according to pre-defined syntax rules to find desired patterns in text.
Pipes were first suggested by M. Doug McIlroy, when he was a department head
in the Computing Science Research Center at Bell Labs, the research arm of AT&T
(American Telephone and Telegraph Company), the former U.S. telecommunications
monopoly. McIlroy had been working on macros since the latter part of the 1950s, and he
was a ceaseless advocate of linking macros together as a more efficient alternative to
series of discrete commands. A macro is a series of commands (or keyboard
and mouse actions) that is performed automatically when a certain command is entered or
key(s) pressed.
McElroys persistence led Ken Thompson, who developed the original UNIX at
Bell Labs in 1969, to rewrite portions of his operating system in 1973 to include pipes.
This implementation of pipes was not only extremely useful in itself, but it also made
possible a central part of the Unix philosophy, the most basic concept of which
is modularity (i.e., a whole that is created from independent, replaceable parts that work
together efficiently).

GLOBAL SCENARIO
While pipe for other uses in the U.S. dates back to the 1830s, the use of pipe for
oil transportation started soon after the drilling of the first commercial oil well in 1859 by
Colonel Edwin Drake in Titusville, Pennsylvania.
The first pipes were short and basic, to get oil from drill holes to nearby tanks or
refineries. The rapid increase in demand for a useful product, in the early case Kerosene,
led to more wells and a greater need for transportation of the products to markets. Early
transport by teamster wagon, wooden pipes, and rail rapidly led to the development of
better and longer pipes and pipelines.

In the 1860s as the pipeline business grew, quality control of pipe manufacture
became a reality and the quality and type of metal for pipes improved from wrought iron
to steel.
Technology continues to make better pipes of better steel, and find better ways to
install pipe in the ground, and continually analyze its condition once it is in the ground.
At the same time, pipeline safety regulations become more complete, driven by better
understanding of materials available and better techniques to operate and maintain
pipelines.
They continue to play a major role in the petroleum industry providing safe,
reliable and economical transportation. As the need for more energy increases and
population growth continues to get further away from supply centers, pipelines are
needed to continue to bring energy to you.
From the early days of wooden trenches and wooden barrels, the pipeline industry
has grown and employed the latest technology in pipeline operations and maintenance.
Today, the industry uses sophisticated controls and computer systems, advanced pipe
materials, and corrosion prevention techniques.

INDIAN SCENARIO
The Indian pipe industry with presence across all the categories of pipes (steel,
cement and plastic) has become a major exporting hub to the regions like Middle East,
US and Europe due to its location advantage and global accreditations. Also, the lower oil
and gas pipeline penetration level in India provides huge opportunity for laying new
pipeline infrastructure In the country, considering its vast geographical area.
The operating environment for the Indian pipe industry was challenging during
financial year 2012.the steel companies expanded their capacities domestically as well as
globally during the last couple of years, which led to excess capacities. Hence, most of
the domestic players had to resort to lower margin orders domestically to maintain their
order books. The higher input and finance costs significally eroded their profitability
margins.
CARE Research expects the demand for Indian pipe industry to improve from
FY2014 & remain healthy over the longer term, both on the global as well as domestic
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fronts, on the back of increasing demand arising from oil & gas and infrastructure
projects. Enhanced global energy demand arising from increasing population and
economic spending in the emerging markets will lead to need for higher exploration and
production (E&P) activity, giving boost to the demand for steel pipe segment. Shale gas
discovery is likely to increase demand for pipeline infrastructure globally.
CARE Research also provides outlook on the pipes industry demand including
exports demand. The company has estimated demand within each segment of steel pipes
like SAW, Seamless, DI pipes etc. The report takes into account several initiatives
undertaken by the Indian government to provide basic water supply and sanitation and
also emphasizes on oil and gas sector expansion plans domestically and globally.
National gas grid will also be set up requiring an investment of Rs.210 bn.City gas pipe
is currently available in 10 cities and the coverage is expected to grow to 40cities in the next
five years, entailing an investment of Rs. 250-300 bn.
The report titled Indian pipe industry; tends and opportunity (2013-2018)
analyzes the opportunities, challenges, demand drivers and significant trends in the
Indian pipes industry. The report elucidates facts on the Indian pipe industry,
supplemented by the latest available statistics. The report also profiles and analyzes the
leading five companies in the pipe industry with latest data and a brief overview of their
business and finance along with their future business strategies. The report gives valuable
insight on various types of pipes such as ductile iron, PVC, cement pipe, steel pipe etc
and their application. The report also focuses on the growing demand of PVC pipes and
latest trend of cpvc pipes. The report presents the analysis of the current market size and
also forecast the future market size of the overall pipes market and different types of
pipes in the coming years.

MAJOR PLAYERS IN PIPES MANUFACTURING INDUSTRY

The competitors for this pipes manufacturing industry in India namely are as follows:

Sanghi Industries Pvt Ltd.

Ram co Industries Limited.
Indian Hume Pipes Limited.
Vardhman Concrete Company Limited.
Vijay Hume pipes Pvt Ltd
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Sudhakar Pipes Pvt Ltd.

LEADING COMPANIES IN PIPES MANUFACTURING IN ANDHRA

PRADESH
In Andhra Pradesh there are few of the competitors for pipes manufacturing
industry namely are as follows under:

Swastik Pipes limited.

Sujala Pipes pvt Ltd.
Ambica Pipes Pvt Ltd.
Sudhakar pipes pvt Ltd
Nandi pipes.
The Indian pipe industry has been showing rapid growth since past several years

and the major reasons for growth of this industry is increasing demand for pipes in the
irrigation sector, oil and gas sector and also the real estate industry . The demand for steel
pipes such as seamless pipes, hsaw, lsaw pipes is increasing as the need for oil and gas
transaction in India is growing. The demand for plastic pipes such as PVC and CPVC is
also increasing as these pipes are better in quality and durability. Infrastructure
development, urbanization and subsequent development of residential and industrial
construction are facilitating the growth of the pipe industry in India.
The government of India is coming up with new projects and investments in the
irrigation sector. The focus of the government is on rural water management, which will
be fulfilled only when there will be proper transportation of water to the end-user. This is
one of the major demand drivers of the pipe industry along with expansion of housing
sector and increasing demand for oil and gas transportation.

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